December 29th 2023.
Motivated individuals are always looking for ways to take their money game to the next level. Goal setting and persistent drive are two key characteristics of such individuals. To start the New Year off right, here are six money hacks that should be part of their consideration.
Hack #1: The Old School Envelope System
Americans are not known for their budgeting skills, so it's not a bad idea to implement the old envelope system. This system ensures that you don't go over budget since it's impossible to overdraft. All you need to do is set up a budget for each category of your spending and withdraw money from the bank to insert it into labeled envelopes. Plus, there are new apps created by the fintech industry that give a modern spin on this old model.
Hack #2: Credit Card Rewards
This is a great way to earn free money if you use the right credit card. Set up all your bills on auto-pay to your chosen credit card and make sure it rewards you for everyday purchases. Accumulating points will add up over time, but make sure to pay off the balance each month to avoid unnecessary interest.
Hack #3: Learn How To Negotiate
Negotiation can save you a lot of money. Whether it's your car or your phone bill, the price is always negotiable. Chris Voss' book Never Split the Difference, which is based on his experience as an FBI negotiator, offers a lot of useful advice on the art of negotiation.
Hack #4: Side Hustles
If you're looking for a couple of extra bucks to save in your budget, side hustles are the way to go. This doesn't require any significant investment and can be anything from freelancing to starting a small business related to your passions.
Hack #5: Take Years Off of Your Mortgage
Making an extra mortgage payment each year can save you time and money. A $200,000 30-year home loan with an interest rate of 5% would cost $186,512 in interest with the traditional 12 payments a year. If you make the equivalent of 13 monthly payments every year, then you will pay only $153,813 in interest, which is a savings of $32,699.
Hack #6: Keep More Per Paycheck
When you take a new job, you will need to fill out a W-4 form. If you put a -0- for the number of allowances, you will get a bigger refund at the end of the year. However, this means you are essentially giving the government an interest-free loan. Increasing the number of allowances will help you keep more money per paycheck.
By employing one or more of these money hacks in the New Year, motivated individuals can take their finances to the next level. Good luck!
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